May 17, 2018 / 9:25 AM / 8 days ago

HK regulator fines Citi $7 mln for failings as Real Gold IPO sponsor

HONG KONG, May 17 (Reuters) - Hong Kong’s securities regulator said it has fined Citigroup’s Asian business HK$57 million ($7.26 million) for failings related to its discharge of duties as sponsor for the 2009 IPO of Real Gold Mining Ltd .

The Securities and Futures Commission (SFC) said on Thursday that Citigroup Global Markets Asia had failed to conduct adequate and reasonable due diligence on Real Gold’s customers.

It also failed to properly supervise its staff when carrying out the sponsor work on the listing application, SFC said.

The resolution of this issue does not involve any licence suspension and “does not place any constraints on Citi’s business activities or on any individual in Hong Kong or elsewhere”, Citi said in a statement.

“Citi cooperated fully with the SFC’s investigation and has already taken appropriate action to ensure that it meets its legal and regulatory obligations at all times,” the bank added. ($1 = 7.8496 Hong Kong dollars) (Reporting by Alun David John; Editing by Himani Sarkar)

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